How Is Your Social Security Benefit Calculated
Updated 2026-07-03
The timing decision has no negotiation on the other side of the table, the formula is fixed, but planning around it works the same way preparing any claim does: know the real numbers before you commit to a date.
The bend-point formula behind your number
This calculator turns your annual income into an average monthly figure, then applies this model's own bend-point schedule: 90 percent of the first $1,174, 32 percent of earnings between $1,174 and $7,078, and 15 percent of anything above that. Each bend point pays a shrinking share, which is why raising already-high income moves the estimate less than raising a modest one.
| Monthly income band (this model) | Share credited toward your benefit |
|---|---|
| Up to $1,174 | 90% |
| $1,174 to $7,078 | 32% |
| Above $7,078 | 15% |
Why 62 costs more than it looks
Claiming at 62 applies a 70 percent factor to your full-retirement-age figure in this model, a reduction that follows every check for life rather than adjusting later. Claiming at 65 lands at 87 percent; waiting to full retirement age reaches 100 percent.
The case for waiting, in dollars
Holding out to 70 applies a 132 percent factor here, the delayed-credit premium for pushing past full retirement age. On a benefit that would otherwise pay 100 percent, that difference compounds over decades of retirement, which is why the age decision often matters more than any other input in this calculator.
More free legal estimators
Compare this timing decision against a personal injury or employment claim.